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27 October, 18:31

A careful analysis of the cost of operating an automobile was conducted by a firm. The following model was developed: y = 4,000 + 0.20x, where y is the annual cost and x is the miles driven. a) If the car is driven 15,000 miles this year, the forecasted cost of operating this automobile = (enter your response as a whole number). b) If the car is driven 25,000 miles this year, the forecasted cost of operating this automobile = (enter your response as a whole number).

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  1. 27 October, 21:40
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    a. $7,000

    b. $9,000

    Explanation:

    The computations are shown below:

    a. The equation is

    y = 4,000 + 0.20x

    where,

    X = miles driven

    And y = Annual cost

    Since 15,000 miles car is driven this year, so the forecasted cost would be

    y = 4,000 + 0.20 * 15,000 miles

    = 4,000 + 3,000

    = $7,000

    b. And if the car is driven 25,000 miles, so the forecasted cost would be

    y = 4,000 + 0.20 * 25,000 miles

    = 4,000 + 5,000

    = $9,000

    We simply put this miles in the equation above
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